Massachusetts Second in Nation for Lottery Sales at $4.8 Billion

While Massachusetts moves forward in the casino approval process, data shows that Massachusetts currently ranks second nationally for lottery sales -- pulling in $4.7 billion in 2012 -- with $833 million of that going in transfers to the state.

According to the North American Association of State and Provincial lotteries, the only state that topped the Commonwealth in lottery sales last year was New York at $8.4 billion. The Bay State bested California ($4.4 billion) Florida ($4.4 billion), and Texas ($4.2 billion).

See How Massachusetts Lottery Revenue Compares to Other New England States BELOW

"We do decent sales -- $2000 a day, on average, I'd say," said Jordan Richardson, the store manager at the Honey Farms on Millbury Street, of lottery sales. "We see a lot of regulars, we do a pretty steady business.'"

Richardson noted however that other Honey Farms did even brisker business. "We have a store in Shrewsbury that does usually double that though, being off the Turnpike, said Jordan. "They'll do like $4,000 a day."

Follow the Money

Nationally, the 43 states where lotteries were legal made more than $19 billion in profits in 2012. State and local governments reaped an additional $8 billion in taxes from commercial and racetrack casinos.

In Fiscal Year 2012, the Massachusetts State Lottery returned over $983 million in net profit to the Commonwealth, of which over $883.7 million in Direct Local Aid was distributed to the 351 cities and towns. For the most recent year reported -- 2011 -- Worcester received over $35 million.

Massachusetts saw an increase of over $300 million in lottery sales from 2011 to 2012 -- and Austin Liquor's Andy Novakoski says business is steady.

"We see a of repeat customers," said Novakoski. "When the lottery guys come and post the "how much has been won here sign", it always seem so low -- I certainly wish it would be higher."

Last September GoLocal reported the biggest lottery winners in Central Mass history. To see a list of all MA lottery winners dating back to 2001, go here.

National Trends

Last fall, consumer research group Vision Critical conducted a survey of nearly 1000 adult lottery players in the U.S -- and reported that "new data reveals 4 surprising facts about lottery players' behavior, attitudes, and experiences," which were:

* Money isn't everything: "While Mega Millions and Powerball will likely remain very popular in the US, non-cash play is an emerging trend that organizations need to keep an eye on," Vision Critical reported.

* Consumers still prefer to purchase lottery games in person: Finding that 78 percent of the lottery players they talked to would rather purchase in-store than buy tickets on line, Vision Critical said "because of its relatively low adoption, online play is probably the next big opportunity for lottery games. If organizations can figure out how to make online play more appealing, they'll have an opportunity to expand their market and attract more customers."

* Men are more likely to play the lottery online: "In general, men are more likely to play the lottery (55 percent vs 42 percent of women), but we also found that men are more receptive to lottery online gaming. 18 percent of the lottery players we surveyed indicated that they are likely to purchase lottery tickets online, whereas only 12 percent of women are likely to do so," they said.

* Not everyone expects to win. According to Vision Critical, "Our research shows that only 75% of players believe that they will eventually win the lottery. That’s a great majority—but it also means that one in four people play without the expectation of winning."

Next Steps in MA

The Massachusetts Gaming Commission claims that the arrival of expanded gaming is anticipated to created between $300 and $500 million in increased revenue -- in addition to both casino construction and permanent jobs.

On Wednesday January 22, the Commission will hear final gaming proposals in Boston from resort-casino applicants MGM Springfield, Mohegan Sun, and Wynn MA LLC, and on Thursday, January 23, commission officials will host a community meeting in Leominster regarding agreements between developer Cordish Companies with Fitchburg and Bolton.

Related Slideshow: Which New England States Make the Most on Lottery Revenue?